In a competitive rental market, where tenants seek value and comfort, a well-maintained and upgraded property not only maximises the rental potential of a property, but it commands higher rental income.
Danique Service-Smikle, manager, Business Relationship, JN Bank, maintains that investing in home improvement projects is imperative as it adds tangible value to the property, ensuring a consistent and lucrative return on investment for landlords.
“Home improvement projects can significantly improve the visual appeal of your home, whether you are considering listing it on Airbnb or another home-sharing platform for short-term rental, opting for long-term rental or putting it up for sale. These projects not only enhance the aesthetics of your home, but can also improve functionality and comfort, thus fostering long-term tenant satisfaction and boosting your property’s resale value in a competitive real estate market,” she said.
“As the demand for quality rental properties continues to grow, pursuing home improvement projects is strategic for those seeking to thrive in the rental business. Beyond mere aesthetic enhancements, thoughtful improvements can significantly boost the desirability of a rental home, thereby attracting more interests in your property,” Mrs Service-Smikle advised.
Paul Thomas, a realtor of Thomas, Forbes, and Associates in central Jamaica, with more than two decades of experience, emphasised that when individuals have multiple options of homes to rent, they are more likely to gravitate towards the home that made an initial strong impression.
“The first thing people notice is the exterior of your home, and it sets the tone for what potential tenants or buyers can expect inside. First impression matters,” said Mr Thomas.
Mr Thomas explored six aesthetic projects that homeowners can pursue that provide a lucrative return on investment.
- Landscaping
Make your home stand out with a manicured lawn, well-maintained gardens, trimmed hedges, ornamental plants, and fruit trees. Other things that can also improve the appearance of the exterior are coloured clay tiles/ bricks in the driveway and a walkway around the house. If you have enough yard space, create a lounge area with seating for entertainment and relaxation. Install outdoor lighting to increase safety at night and create a warm ambiance.
- Moulding of Windows and Doors
The use of decorative mouldings around windows and doors can transform plain and simple windows and doors, giving your home an upscale look. You can choose from various styles, sizes, and finishes to create the look that complements your interior or exterior design.
Upgrading from traditional louvre windows to French windows can be a game-changer. French windows allow an abundance of natural light indoors and excellent ventilation.
- Repainting
A fresh coat of paint to the interior and exterior can instantly transform your home’s appearance making it look inviting and move-in ready. It breathes new life into your home and conveys that your property is well cared for. Choose neutral colours that appeal to a wide range of persons.
- Kitchen Renovation
The kitchen is often considered the heart of the home and is usually the centre of attention for potential renters or buyers. Therefore, its look will significantly influence the overall impression of the property.
You may consider changing laminate countertops to granite countertops which will provide a luxurious appearance. Also, installing modern cabinets or respraying old cabinets can transform the kitchen’s look.
- Bathroom Renovation
Bathrooms can make a home feel cozy. A beautifully renovated bathroom instantly adds a touch of luxury to your home and can be a decisive factor for those seeking a move-in-ready home.
The types of bathroom improvements that can help you get the most return on your investment are upgrading the fixtures, replacing faucets and showerheads and using decorative wall tiles. Also, the use of vanity lights and strategically placed mirrors can give your bathroom a fresh and modern appearance.
- Retiling
A well-executed tiling job enhances the cleanliness of the interior. Replacing terrazzo floor tiles with high-quality tiles, such as porcelain and ceramic, can create an inviting atmosphere. The right colour and pattern can enhance the indoor aesthetics. Additionally, they can be quickly wiped clean, making them ideal for busy occupants.
Mr Thomas further advised that a home improvement project costing $1.5 million can increase the value of a home by up to five million dollars.
“The increased value is based on two main factors. First of all, it depends on where the home is located. You have to be aware of the going prices of homes in the area where you live to know if you will get a big return on your investment. Also, it depends on the extent of the home improvement,” Mr Thomas said.
